Resource Factors Affecting Labour Demandfor Textile and Garment Industry in Thailand

Abstract

This article aims to define the correlation between particular resource variables with the labour demand and propose forecasting model for labor demand in textile industry represented by fiber manufacturing companies (ISIC CODE 13111) and in garment industry represented by the manufacturer of work wear (ISIC CODE 14111) in Thailand by multiple regression with and without variable transformation.This research defined eight independent variables: Land capital (X 1 ), Buildings capital (X 2 ), Machinery capital (X 3 ), Working capital (X 4 ), Factory area (X 5 ), Building area (X 6 ), Horsepower (X 7 ), and Type of manufacturer (X 8 ).Secondary data were acquired from the Department of Industrial Works where registered companies submitted their essential data and obtained the approval permit in doing business during 2015.The result of analysis by multiple linear regression are used to explain how particular resource factors affect labour demand for textile and garment industry in Thailand by comparing between textile and garment industry.The results from the study also reveal that transforming labor demand (Y) and Horsepower (X 7 ) with logarithm satisfy all regression assumptions and the forecasting models are also proposed.